Investment Grade
Our Investment grade funds aim to deliver consistent risk-adjusted returns by limiting their investment universe predominantly to securities deemed to be higher quality and at a lower risk of default.
Investment Grade Quarterly Update – January 2026
Gordon Shannon, Partner, Co-Head of Investment Grade, explains how resilient US economic activity and evolving Federal Reserve dynamics shaped Q4 and why we remain focused on high-quality credit heading into 2026.
Key takeaways
- The strong technical backdrop supporting fixed income throughout 2025 was tested in Q4, as several risks appeared to materialise, but markets proved resilient.
- 2025 delivered solid returns, with a pronounced spike in volatility concentrated in a single month following the announcement of US tariffs. Despite this, returns were remarkably smooth over the year.
- We expect volatility in markets to remain elevated in 2026, and with credit spreads at their tightest levels since the Global Financial Crisis (GFC) we believe it is prudent to avoid cyclical issuers and more aggressive financial exposures.
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